US Markets
Friday, November 3rd, 2023 2:28 pm EDT
Key Points
- Stocks rose on Friday, marking the best week in 2023 for the stock market, as a soft jobs report led to a decline in bond yields. The Dow Jones Industrial Average gained 165 points (0.5%), the S&P 500 climbed 0.5%, and the Nasdaq Composite advanced 0.4%. Investors are growing optimistic that the Federal Reserve’s rate-hiking campaign is ending, with significant weekly gains across major indices.
- The October jobs report showed weaker-than-expected results, suggesting that the Fed’s efforts to cool the economy and combat inflation might be working. The U.S. added 150,000 jobs last month, below the consensus estimate of 170,000 and lower than the previous month’s figure of 297,000. The unemployment rate increased to 3.9%, missing expectations of remaining steady at 3.8%. Average hourly earnings also fell short, rising by 0.2% in October compared to the anticipated 0.3% increase.
- The bond yields that had been impacting the stock market in the past three months tumbled in response to the disappointing jobs report. The 10-year Treasury yield lost over 9 basis points, dropping to 4.57% from a recent high of 5%. The 2-year Treasury yield also declined by 7 basis points, reaching 4.9%. Despite Apple’s 1.5% stock decline due to a weak revenue outlook, other companies like Block saw a 16% increase in their stock prices after beating earnings expectations and raising full-year guidance. Paramount Global also experienced a 4.5% jump following a strong quarterly report.
The stock market experienced gains as bond yields dropped following a weaker-than-expected jobs report, marking the best week for stocks in 2023. The Dow Jones Industrial Average rose by 165 points (0.5%), the S&P 500 climbed 0.5%, and the Nasdaq Composite advanced 0.4%. Investors are growing more optimistic that the Federal Reserve’s rate-hiking campaign may be ending, with the Dow up 5%, the S&P 500 on track for a 5.6% weekly advance, and the Nasdaq up 5.8%, their best performance since November 2022. The October jobs report showed the addition of 150,000 jobs in the U.S., below the expected 170,000 consensus estimate, indicating that the Fed’s efforts to curb inflation could be working. The unemployment rate also increased to 3.9%, while average hourly earnings rose by 0.2%, missing the expected 0.3% increase. This reading eased inflation and interest rate concerns while reflecting a robust job market. Bond yields dropped significantly in response, with the 10-year Treasury yield falling more than 9 basis points to 4.57%, down from last month’s high of 5%. Apple’s stock fell 1.5% as the company issued a weak revenue outlook for the December quarter despite beating expectations in its fiscal fourth quarter. In contrast, Block’s stock surged 16% following strong earnings and an upward revision of full-year guidance, while Paramount Global saw a 4.5% jump after a positive quarterly report.
For the full original article on CNBC, please click here: https://www.cnbc.com/2023/11/02/stock-market-today-live-updates.html
